Alarm.com (NASDAQ:ALRM) Cut to Hold at Zacks Research

Zacks Research downgraded shares of Alarm.com (NASDAQ:ALRM) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday,Zacks.com reports.

A number of other analysts have also recently weighed in on ALRM. Barclays lowered their price target on Alarm.com from $56.00 to $50.00 and set an “equal weight” rating on the stock in a research report on Friday, February 20th. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a report on Tuesday, January 27th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a research note on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $57.00.

Alarm.com Stock Performance

NASDAQ:ALRM opened at $42.49 on Wednesday. The firm has a market capitalization of $2.11 billion, a PE ratio of 17.27, a price-to-earnings-growth ratio of 1.51 and a beta of 0.80. The company has a quick ratio of 1.78, a current ratio of 1.92 and a debt-to-equity ratio of 0.58. Alarm.com has a 12-month low of $41.50 and a 12-month high of $60.76. The firm has a 50-day moving average price of $47.15 and a 200 day moving average price of $50.09.

Alarm.com (NASDAQ:ALRM) last released its quarterly earnings data on Thursday, February 19th. The software maker reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.06. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.The company had revenue of $261.66 million for the quarter, compared to analyst estimates of $250.75 million. During the same period in the prior year, the company posted $0.58 EPS. The company’s revenue was up 8.1% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. Research analysts anticipate that Alarm.com will post 1.64 earnings per share for the current fiscal year.

Insider Activity at Alarm.com

In other news, CFO Kevin Christopher Bradley sold 1,510 shares of the firm’s stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total value of $69,414.70. Following the completion of the sale, the chief financial officer directly owned 51,546 shares in the company, valued at approximately $2,369,569.62. This trade represents a 2.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 5.80% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Optiver Holding B.V. bought a new stake in Alarm.com during the 3rd quarter worth about $25,000. Strengthening Families & Communities LLC bought a new position in shares of Alarm.com in the third quarter worth about $27,000. Covestor Ltd lifted its position in shares of Alarm.com by 67.3% during the fourth quarter. Covestor Ltd now owns 691 shares of the software maker’s stock worth $35,000 after purchasing an additional 278 shares in the last quarter. Hantz Financial Services Inc. lifted its position in shares of Alarm.com by 2,637.9% during the third quarter. Hantz Financial Services Inc. now owns 794 shares of the software maker’s stock worth $42,000 after purchasing an additional 765 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC bought a new stake in shares of Alarm.com during the second quarter valued at approximately $43,000. Institutional investors and hedge funds own 91.74% of the company’s stock.

About Alarm.com

Alarm.com Holdings, Inc provides a cloud-based software platform for connected properties, enabling residential and commercial customers to monitor, manage and control security, energy and home automation solutions. The company’s interactive services connect security systems, smart thermostats, door locks, lights and video cameras through cellular, broadband and Z-Wave networks, offering real-time alerts and remote access via mobile and web applications.

Through its platform, Alarm.com delivers an integrated suite of products that includes intrusion detection, video monitoring and cloud recording, energy management features such as smart thermostat scheduling, and home automation controls for lighting, garage doors and connected appliances.